I - INTRODUCTION

Summary

Request for Consultations

1.1 On 29 July 2009, the European Union (then the European Communities), and on 14 January 2010, the United States, separately requested consultations with the Philippines pursuant to Article XXII of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”) and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”) with respect to the taxation of imported distilled spirits by the Philippines. The United States and the European Union each requested to be joined in the consultations requested by the other Member. The Philippines accepted the requests of both the United States and the European Union to join the consultations.

1.2 Consultations were held between each complaining party and the Philippines. The European Union and the Philippines held their consultations on 8 October 2009 in Manila. The United States and the Philippines held their consultations on 23 February 2010 in Geneva. The United States and the European Union each attended the consultations requested by the other Member. These consultations did not lead to a mutually satisfactory resolution of the dispute.

Establishment and Composition of the Panel

1.3 On 10 December 2009, the European Union, and on 26 March 2010, the United States, requested the Dispute Settlement Body (“DSB”) to establish a panel pursuant to Articles 4 and 6 of the DSU, with standard terms of reference as set out in Article 7.1 of the DSU.